Why are inputs not included in the calculation of the gross domestic product?
What will be an ideal response?
Gross domestic product of a country is the final value of all goods and services produced within the borders of the country during a particular year. Therefore, the value of raw materials is implicitly counted when we value the final good. If the value of the input is counted separately, it would result in double-counting.
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Refer to Common Property II. Suppose the common property becomes privately owned. If the owner charges a competitive entrance fee for the right to use the property, social gain will equal
The following questions refer to the accompanying diagram, which shows the benefits and costs associated with the use of a common property.
a. area C + D + F + G + I.
b. area F + G + H + I.
c. area A + B + C + D + F + G + I.
d. area A + B + C + D + E + F + G + H + I.
If the dollar appreciates relative to other currencies, which of the following is true?
A. It takes more foreign currency to buy a dollar. B. It takes more dollars to buy a foreign currency. C. U.S. exports will increase. D. Foreign purchases of U.S. goods will increase.